The document provides an overview of the chemical industry in Africa. It discusses the major segments of the chemical industry including petrochemicals, specialty chemicals, pharmaceuticals, agrochemicals, and biotechnology. It notes that South Africa has the largest and most advanced chemical industry in Africa, accounting for about 5% of its GDP. The production of agrochemicals, especially fertilizers, is a key focus. Africa imports many chemicals but has potential to develop pharmaceutical chemicals using its rich biological diversity. Challenges to the industry include infrastructure issues, competition, power availability, and skills shortages.

1. CHEMICAL INDUSTRY IN AFRICA
AN OVERVIEW
MUKUL KUMAR
Certificate Course in International Trade (Africa)
19 March 2016

2. GENERAL STRUCTURE OF CHEMICAL INDUSTRY

3. MAJOR SEGMENTS OF CHEMICAL INDUSTRY
Base chemicals
Specialty
chemicals
Pharmaceuticals
Agrochemicals
Biotechnology
• Petrochemicals, man-made fibers, industrial gases, fertilizers,
chlor-alkali, and other organic and inorganic chemicals
• Dyes and pigments, leather chemicals, construction
chemicals, personal care ingredients and other specialty
chemicals
• Active Pharmaceutical Ingredients (APIs) and formulations
• Insecticides, herbicides, fungicides and other crop protection
chemicals
• Bio-pharma, bio-agri, and bio-industrial products

4. CHEMICAL INDUSTRY MARKET SHARE
Source- statista.com

5. CHARACTERISTICS OF AFRICAN CHEMICAL INDUSTRY
Africa’s contribution to value-added
production of chemicals is small, but due
to relocation of manufacturing in
general, not just chemical manufacturing
only, from OECD countries to developing
(african) countries, this sector can be
expected to grow further.
Chemical and petroleum industries
currently account for 3 to 42% of the GDP
in African countries.
The most advanced chemical industries in
Africa are found in the Northern (Tunisia &
Egypt), Western (Nigeria) and Southern
Regions(south Africa). Their development have
been facilitated by access to larger markets and
the presence of natural resources, notably
natural gas and oil, and the presence of well-
developed infrastructure (especially true for
South Africa).
Although South Africa’s chemical industry
is small compared to that of OECD, still, it
plays a significant role in the country’s
economy, accounting for about 5 percent
of its GDP and providing over 200,000
direct employments annually.
The production of agrochemicals is a key
focus of the sector, especially since
agriculture still forms the backbone of
many African economies.
Africa imports large amounts of various
types of chemicals for industrial,
domestic and agricultural purposes, as
well as for cosmetics, food, plastics,
laboratory and petroleum.
Africa can tap into its rich biological
diversity to develop pharmaceutical
chemicals.

6. AFRICA IN A GLOBAL CONTEXT
 Africa has 60% of world’s
uncultivated arable land.
 It accounted for about 2.9
percent of world fertilizer
consumption in 2011.
 Its share in world consumption of
nitrogen is 3.3 %, phosphate 2.6 %
and potash 1.8%.
source- Current world fertilizer trends
and outlook to 2016,FAO
 Global chemical industry in 2013 – USD 4.2 trillion
 Indian chemical industry in 2013 – USD 100 billion
 African chemicals market demand - USD 80 billion
 Africa accounts for 17% of global phosphoric acid production.
Source: Cefic Chemdata International (2014)

7. TOTAL MARKET FOR SOME SPECIFIC CHEMICALS
Chemical group Specific type Key region/country Total market($m)
Adhesives
South Africa 239
Angola 12
Mining chemicals
Mining explosives Sub- Saharan Africa 991.6
Processing chemicals Sub- Saharan Africa 93.4
Agrichemicals
Fertilizers Africa 5000
Crop-protection
chemicals
Africa 2000+
Kenya 111.6
South Africa 675.5
Nigeria 225.3
Infrastructure chemicals
South Africa 160.2
Nigeria 155.1
Kenya 67.5
Source- Frost & Sullivan

8. Key African Players In African Chemical Industry
African company Country Turnover($m),
2012
Main Products
SASOL South Africa 11290* Fertilizer, polymers, solvents,
surfactants
African Explosives &
Chemical Industries
South Africa 1638 Fibers, fatty aids, Petro Chemicals
and explosives
Omnia Holdings South Africa 1344 Cosmetics, water treatment,
paints and inks, plastics, rubber
Groupe Chimique
Tunisien
Tunisia 780 Rock phosphate, phosphoric acid
and fertilizer
African Oxygen South Africa 644 Packaged medical gases, Industrial
gases, Refrigerants
Abu Qir Fertilizers &
Chemical Ind.
Egypt 488 Fertilizers
Freeworld Coatings South Africa 415 Decorative, automotive and
industrial coatings
Notore Chemical Nigeria 400 Urea fertilizer, Ammonia
Source- http://www.theafricareport.com/top-500-companies-in-africa-2013.html
* or year 2014. ^ for year 2011.

9. Middle East/Africa Chemical Distribution Leaders 2012
Rank Company Sales($m)*
1 Petrochem Middle East 593
2 Protea Chemicals 508
3 ICC Chemical 426
4 REDA Chemicals 397
5 Solvochem Holland 347
6 Orkila 330
7 Helm 234
8 Manuchar 210
9 IMCD Group 152
10 Shamrock Shipping & Trading 710.8
22 Pon Pure Chemicals (Chennai based) 19.7 (291 overall)
Source- ICIS Top 100 Chemical Distributors 2014
NOTES: *Sales are by region and may differ from the total sales figure in the overall Top 100 listing. This table also excludes companies
that do not break out sales by geography. **Figure includes chemical production

10. INDIA-AFRICA CHEMICAL TRADE
HS
code
Chemicals Top African Exporters to India(in Cr rupees)
25 Salt; Sulphur; Plastering
Materials, Lime And Cement
Egypt(1107), Morocco(1045), Togo(772),South
Africa(75), Kenya(55)
28 Inorganic Chemicals Morocco(4317), Tunisia (1049), Senegal (694),
South Africa (224), Kenya (189)
29 Organic Chemicals South Africa(543), Swaziland(23), DRC(15)
38 Miscellaneous Chemical
Products.
South Africa(69), Swaziland(6)
39 Plastics South Africa(141), Egypt(75)
Source- Export Import Data Bank, Department of Commerce

11. INDIA-AFRICA CHEMICAL TRADE
HS
code
Chemicals Top African Importers to India(in Cr rupees)
25 Salt; Sulphur; Plastering
Materials, Lime And Cement
Egypt(369), South Africa(47), Nigeria (25),
Sudan (25), Tanzania(24)
28 Inorganic Chemicals Egypt(221), South Africa (158), Kenya
(92),Nigeria(66), Tanzania (63)
29 Organic Chemicals Egypt(854), South Africa (693), Nigeria(362),
Kenya (208), Algeria (163)
31 Fertilizers Mozambique(61), Swaziland(17), Kenya (8)
38 Miscellaneous Chemical
Products.
South Africa (302), Egypt(260), Nigeria(231),
Kenya (136), Uganda (100)
39 Plastics Nigeria(903), Egypt(540), South Africa (451),
Kenya (388), Ethiopia (300)
Source- Export Import Data Bank, Department of Commerce

12. COUNTRY FOCUS- SOUTH AFRICA
South Africa's chemical
industry, the largest of its
kind in Africa, is highly
complex and widely
diverse, spanning fuel and
plastics fabrication to
pharmaceuticals.
Its chemical industry is
about 5% of its GDP and
providing over 200,000
direct employments and
accounting for 23% of the
nation's manufacturing
sales.
It is a world leader in coal-
based synthesis and gas-to-
liquid technologies. It is among
the lowest-cost producers of
ethylene and propylene in the
world, thanks to abundant
access to low-grade coal and
leading-edge process
technology.
While the South African
pharmaceutical market is only
0,35% of the global market, it is
also the world’s largest market
for anti- retroviral drugs with
an estimated 1.06-million
adults and more than 105 000
children receiving state-
sponsored antiretroviral
treatment in 2010.

13. COUNTRY FOCUS- SOUTH AFRICA

14. SUCCESS STORY- SASOL LIMITED
 Sasol is an international integrated chemicals and energy company that has
exploration, development, production, marketing and sales operations in 37
countries around the world.
 Supplier of 1/3rd of South Africa’s total inland transportation fuel.
 World’s leader in the production of co-monomers – hexene and octene (used in
plastic manufacturing).
 One of the world’s leading producers of surfactant intermediates and surfactants.
 Largest corporate taxpayer in South Africa.
Source - http://www.sasol.com/extras/sasol-facts-pres-2/

15. SUCCESS STORY- NOTORE CHEMICAL
One of the leading fertilizer and agro-allied companies in Nigeria or rather Africa.
Only producer of urea (nitrogen fertilizer) in Sub Saharan Africa, including South Africa.
Seven out of ten Africans earn their living from farming. Yet Africa's food import bill was worth US$35 billion in
2014. By making fertilizer more accessible to farmers through its supply chain and pricing, Notore is helping to
stimulate the local production of foods such as rice and sugar, increasing self sufficiency and reducing the
continent’s dependence on imports. It’s in a strategic position for championing the African Green Revolution.
Notore has signed Technical Advisory Service Agreement (TASA) with Tata Chemicals Limited of India.
Source - http://www.notore.com

16. KEY CHALLENGES IN AFRICAN CHEMICAL INDUSTRY
Key challenges
in African
chemical
industry
Poor state of
infrastructure
Increasing
competition as
MNCs enters
Power
Unavailability
across the
continent
Crime and
corruption
Complex tax,
excise and
legal
requirement
Insufficient
availability of
skilled
workers

17. Key Growth Drivers Of African Chemical Industry
Rise in GDP,
Purchasing Power and
Middle class
Rapid
Urbanization &
Infrastructure
development
Low- carbon
(green)
Economy
Huge biodiversity for bio-agri, bio-
plastics and bio-pharma products
Noise insulation sol for
healthy buildings, anti-
microbial coatings for water
treatment and PU foams to
manage water run-off. Huge
potential for construction
and automotive chemicals
Huge growth potential for agriculture, pharmaceuticals
and specialty (dye, cosmetics & detergents) chemicals

18. Thanks.